Information about the Comparative Effectiveness Research Fee in 2018
What is the Comparative Effectiveness Research Fee? According to the society human resource manager, The ACA created a Patient-Centered Outcomes Research Institute (PCORI) to conduct research evaluating and comparing health outcomes and the clinical effectiveness, risks and benefits of medical treatments. The PCORI’s work will be paid for by a Patient-Centered Outcomes Research Trust Fund, which will be funded in part through the comparative effectiveness research fees.
According to Cigna, the fee is based on the average covered lives for the applicable 12-month policy or plan year. It is paid using IRS Form 720 by July 31 each year for the plan year that ended in the preceding calendar year. As a reminder, employers must use their ERISA plan year if it is different from the renewal date.
Who pays for the fees exactly? Insurers pay for insured plans. Employers pay for self-insured plans.
How much are the fees? Initial annual fee of $1 per average covered life.
For more information on the Comparative Effectiveness Research Fee contact Cosmo or visit Cigna's toolkit here.
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